The Expanding Credit Market in India
The credit market in India is growing rapidly, positioning itself as the 4th largest credit industry globally. It has been recording a Compound Annual Growth Rate (CAGR) of over 11% year-on-year, driven primarily by short-term credit facilities like personal loans and credit cards. Together, these two financial products constitute around 78% of all credit lending in India. Borrowers should consider loan repayment schedules carefully, including Equated Monthly Installments (EMIs), to effectively plan both current and future finances.
Several online EMI calculators are available to help individuals accurately determine their EMI obligations. Choosing a reliable and accurate EMI calculator is essential for understanding your monthly repayment commitment and managing finances effectively.
How Can an Online EMI Calculator Help You?
With the number of credit accounts growing at a staggering CAGR of 28%, reaching 107 million accounts by the end of FY18, using an EMI calculator has become crucial for borrowers. Whether you are opting for a secured or unsecured loan, understanding your EMI beforehand is vital for financial planning.
Here’s how an EMI calculator can help:
- Accurate Estimate of EMI: An EMI calculator provides an accurate estimate of your monthly installment amount. This helps you better plan your finances and ensure that your debt-to-income ratio stays below 50%, which is crucial for loan approval.
- Time-Saving: An EMI calculator saves you the time and effort required for manual calculations, which can be complex and tedious.
- Error-Free Calculations: Using an EMI calculator eliminates the risk of manual miscalculations, ensuring you always get precise results.
- Loan-Specific Results: Different loans (home loans, personal loans, auto loans, etc.) have varying EMI breakups. The EMI calculator allows you to customize calculations based on the specific loan type.
The Formula to Calculate EMI Amount
An online EMI calculator uses a standardized formula to compute the monthly EMI amount for any loan. The formula is as follows: EMI=P×R×(1+R)N(1+R)N−1\text{EMI} = \frac{P \times R \times (1 + R)^N}{(1 + R)^{N – 1}}EMI=(1+R)N−1P×R×(1+R)N
Where:
- P = Principal loan amount
- R = Monthly rate of interest (annual interest rate divided by 12)
- N = Loan tenure (in months)
This formula is universally used in all online EMI calculators to ensure that borrowers get accurate results every time, irrespective of the loan type or its variables. Different factors, such as the loan type and interest rate, may be added to provide more precise results for specific loans, like home loans or personal loans.
How to Use the Ind Tax Filings Online EMI Calculator
The Professional Utilities online EMI calculator is incredibly user-friendly and allows you to calculate your loan EMIs within seconds. Follow these simple steps to use it:
- Step 1: Enter the required values such as the principal loan amount, loan tenure, and the rate of interest.
- Step 2: The calculated EMI amount will be displayed instantly.
Advantages of Using the Ind Tax Filings EMI Calculator
- Completely Free: Our EMI calculator is available at no cost. You can use it anytime, as many times as you want, without restrictions.
- 100% Accurate: The calculator delivers precise EMI calculations every time, ensuring you can trust the results for your financial planning.
- Fast and Instantaneous: It provides results instantly, saving you time and effort in calculating your monthly payments manually.
In addition to the loan EMI calculator, Professional Utilities also offers a wide range of other financial calculators, which are all free to use. Feel free to explore these tools as many times as you need for your financial planning.